South Carolina Obama Refinance To 125% Announced
For many people living in South Carolina today’s announcement from HUD Secretary Shaun Donovan means that they can now refinance their home where prior to the announcement, they could not. Today, it was announced that the Obama refinance plan was expanding its guidelines to allow people up to 125% (from 105%) “underwater” to still be eligible for a refinance. This change in guidelines to the Making Home Affordable plan is just one more thing the Obama administration is doing to boost participation in its anti-foreclosure programs.
Both right here in South Carolina as well as all over the US, there will now be thousands of people who currently owe more than 105% of their home’s value take advantage of lower rates while they are available. While rates are low here in South Carolina, it is expected that many people will hurry to take advantage of the Obama 125% refinance and get their refinance applications in before rates rise again.
According to CNN reporters:
More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.
A story at Bloomberg said:
Paul Miller, an analyst with FBR Capital Markets in Arlington, Virginia, said mortgage brokers have told him that many aren’t sending borrowers through the program because it’s cumbersome and the loan applications “still have a lot of bells and whistles, which makes them difficult to do.”
What This Means For Homeowners In South Carolina
Although it can be hard to estimate the number of people here in South Carolina that can benefit from this plan, one thing is clear – many people across the nation will be able to now take advantage of lower rates. For more information about the announcement or to find out if you qualify under the new guidelines, be sure to speak with a South Carolina mortgage expert today.
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